Contrast Ratio is basically "How black is the blackest black, compared to the whitest white".
Poor Contrast Ratio is typically identified as "dark grey" when it is meant to be "Black".
Due to the "back-lit" nature of LCDs, contrast ratios can never be as high as CRTs or Plasma panels, because these items do not have back-lighting. The polarising pixels on an LCD can not be made to perfectly cut 100% of light when the pixel is "twisted" to prevent all light from passing through (a black pixel). This is why high contrast ratios on an LCD panel cost quite a bit: the qaulity of the pixels must be very high indeed.
As to buying an LCD - you must ensure that you are happy with the "Native Resolution" of the display. If you can not easily read text on the monitor then you must not buy it. LCDs, because of the fixed number of pixels (as opposed to an (potentially!) infinite number on a CRT) in an LCD, scaling an LCD to a different resolution makes the pixel to pixel ratio not 1:1. This causes extreme fuzziness which looks like crap.
If you aren't gaming, then you want a contrast ratio which is good enough (600:1 should be fine for most purposes) and a native resolution you are happy with.
If you ARE gaming, then you want a grey-to-grey response time as low as possible (12ms or better) and a screen which support refresh rates of at least 75 Hz.
DVI is preferable, but VGA is OK for a connector if need be.
You still have some research to do, in order to make sure you buy right, and don't regret it later.
Remember: The bitterness of low quality lasts far longer than the initial joy of low price.